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  FOX Business    Markets Now    News/Business.  
   Business news. New.  

    December 11, 2012
    11:00 - 1:00pm EST  

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shirt. charles: she is doing absolutely remarkable. stuart: there has been an outpouring of goodwill to you and your wife from our viewers on this program. charles: even people in the street, i have to say thank you, stuart. it is amazing how much love is out there. it is a beautiful thing. stuart: keep us up to date, please. we have run a little bit over, turn on. i think it was for a worthy cause. dagen: thank you for making me tear up again, charles. the house speaker is set to update us on these talks in about an hour. connell: we could see a new round of money pumping.
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the impact as the two-day meeting starts. dagen: michigan's capital under siege. protests over right to work. connell: should we call it an apple tax? on average, families are spending thousands of dollars a year on apple products. dagen: it is not a tax, it is a choice. top of the hour, stocks now and every 15 minutes. nicole: all right, dagen and connell, take a look at the markets. the dow jones industrials up triple digits. the dollar has been lower. they have talked about the gains that we have been seeing over in europe. the euro top 50. that is very interesting, as well. this is the environment.
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it bodes very well. another winning day here on wall street. drug stocks, bank stocks doing well. the vix, the fear index, is to the downside. let's take a look at urban outfitters. taking a look at their quarterly sales. they are looking better than expected. under their umbrella is a name brand that a lot of the teenagers know very well. they had a good block friday. urban outfitters is up over two dollars. back to you. connell: as we get close to this fiscal cliff, both sides agreeing to get serious. we have heard the house speaker will update us on the talks within that hour from house floor. we will hear what speaker banner has to say. joining us right now are to
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congressman. would you vote if there was an agreement? >> i think it will be a balanced plan that will increase revenues by raising the rates on upper income families, but, at the same time, agreeing to substantial cuts. connell: the reason i started by asking that question is because i am sure it is frustrating, the members of congress to not be involved in this. this is two guys behind closed doors. what about from your side of it. will the speaker have the votes, even if he gives in? >> we do not know. as you suggested, you cannot
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have 218 or 435 or 535 people in a room trying to negotiate. this is the way you kind of have to do it. one on one. he needs 217 other people in the house and 60 people in the senate to make that deal because law and actually ring that deal through. i do not think there is any guarantees either way. connell: what cannot be in this deal? what is a dealbreaker for you for the republican side? >> if there is not any entitlement significant and rapid entitlement reform. what this is about, in my opinion, is the deficit. we are not talking about taxes. i do not think the tax increases are a good idea. i don't and democratic colleagues disagree.
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connell: the president put a plan on the table. it only had 350-$400,000 in these medicare costs. you may have to give more than that. how much can you stomach q first of all, i do not think it even make sense to have social security on the table. social security did not get us into this problem, it is not their responsibility to get us out of the problem. if it is just the republicans try to get a pound of flesh out of the class seniors by going after their health benefits that that is a starter.
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connell: let me gauge your confidence on both sides. what odds would you give that we will get something done by at least the end of the year? >> i am very confident that we will at birth the fiscal cliff. the only issue is how much of this will we get done. >> i am not at all confident, actually. just hearing what adam said does not make me any more confident. it is on schedule to rock itself and very, very soon. when i hear this kind of stuff that we are trying to push granny over the cliff, that is absolute garbage and that will
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not take a deal. we have to reduce the deficit. you have to do that by reforming medicare and medicaid. you have to deal with all of them. when i hear my democrat colleagues say maybe we will do something with medicare card ten years away, that will not work. connell: we will wrap it up for today. thank you to both of you. >> thank you. dagen: investors suffering from a little fiscal cliff fatigue. kevin flanagan says do not look away. this could look really ugly. hey, kevin. looking at the yield on the ten year period about 1.65%.
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it does not look like there has been any serious market reaction . what could happen if we get to this deadline and nothing happens? >> the treasury market is in wait and see mode. we do not see the suppressors take hold. i think that kind of keeps you in the range we are at right now. the other scenario would be had dived off the cliff. treasury yields will likely come down. the other scenario is to grand @argain. right now it seems like the least likely. dagen: big picture, though. is it almost impossible at this point to make money in fixed income? i am not just talking about
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treasuries. >> total return will be a lot more difficult this year. you will not see the numbers you sell in 2011 and so far in 2012. you can clip the coupons and move on from there. dagen: because of inflation still being moderately low, you buy that then you back yes. inflation does not look like it will be that big of a problem. the economy will grow modestly, at best. connell: should we be nervous about bernanke leaving a little more than a year from now? >> that will be a big discussion as the year progresses. everyone thought a romney association caught you would get a new thread chairman.
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we could very well have a new chairman january or february. dagen: you do not think that they launch additional bond buying. >> twist and tomorrow, pretty much. i think they will start buying treasuries. i think qe3, qe4, whatever you want to call this thing, will be a lot like qe one. dagen: kevin, it was great to see you. thank you very much. incredible insight. connell: homes left completely uninhabitable after hurricane sandy tore through. over 71,000 households have applied for fema help. again 2000 that you cannot live
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in at all. obama proposed $60,000 in aid. dagen: europe's biggest bank said to cough up almost $2 billion because it allowed money laundering to go on. connell: a lot of products for apple. a lot of money. first, let's take a look at oil. people are optimistic about a deal. we will be right back. ♪
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biagio, which you already know, because they have other names under their brand. this is about alcohol. walking away from a hose a quarter of a deal. they did not reach a deal with the mexico company. this is a failure, according to bernstein. here is a look at the shares. down 1.2%. let's talk about the major market averages. the dow jones industrials is up. back to you. dagen: thank you. connell: time to make a little bit of money. charles payne is here talking
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apple. dagen: cheers to the tech company. charles: i am watching it closely and closely and closely. now is the time to pull the trigger. dagen: to sell or five? charles: good question. by november 203, it was 571. i think i'll probably, it is making a turn. i would like to see it get back up. i think it has a pretty good shot to get into the 600. expectations are so much lower then they have been in the past. connell: we started this conversation when the stock was getting hammered. what was the thought process?
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what were you waiting for? charles: i was waiting for all the selling to the exhausted. it seems like there's 525 area, it is in relatively strong hands at this level. dagen: how long could you on this thing if you were a new buyer today? it cannot possibly keep growing the weight has been growing. charles: you are absolutely right. someone could have made the same argument two years ago and missed a pretty good rally.
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dagen: apple maps so that the people got stranded in the wilderness in australia. [ laughter ] connell: all right, charles. dagen: thank you very much. connell: there is no reason to jump on it. more from michigan. unions protesting this right to work legislation. we will take you there. dagen: more soldiers being booted from the military because they are just too big. take a look at world currency today. is it time to plan a trip yet. that would be a big no. ♪
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>> 22 minutes past the hour. severe weather continue to pound parts of the bid west. the slow-moving storm dumped ten
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and a half inches in just 24 hours. the twin cities have seen almost as much snow already has all of last winter. a 31-year-old man is shot, execution style, while walking down the street yesterday. police are now looking for two suspects. medics rushed the victim to the hospital where he died. defense attorneys for. to asking a judge to and gps monitoring. those are your headlines. dagen: thank you. british banking giant agreeing to pay almost $2 billion. more than $1.9 billion. a record amount for a allowing money laundering to go on for
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years. this is the largest penalty ever paid. it is a nonprosecution agreement. if it changes its ways it will not be prosecuted. if you think the government is draining your wallet, you may want to take a closer look at those people around your house. what they are carrying around and using. i am talking about apple products. households spend an average of $450 on those devices in 2011. nearly tripled the amount in 2011. analysts are calling it an apple tax. no, it is just, you are spending money on stupid apple products. under intense pressure to curb its budget, the army is due this thing a growing number of soldiers that did not meet
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fitness standards. the number of active duty military personnel deemed obese, more than tripled. obesity is now the leading cause of ineligibility for people who want to join the army. connell: we will get to this right to work fight that is going on in the state of michigan. dagen: jeff flock is in the middle of it. jeff: we will have him live on the air and just a moment. about 12,000 people by my count. stay tuned. ♪
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connell: the union protesters are out in the state of michigan paddling the right to work legislation in the state. we are going there live in just a moment. apple shareholders hoping for a early holiday gift. no early dividend announcement. dagen: bottom of the hour. stocks now and every 15 minutes. we are watching delta. nicole: that is right. what happened here is delta
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confirmed it is acquiring the singapore airlines stake in virgin atlantic. i know you interviewed richard branson did he was here not that long ago. forming a joint venture. delta's stock is certainly reaction to this news. let's take a look at where it is right now. it is on the move. of course, a continuous with a lot of the deals and prices that it can expand it networks. let's talk about the major market averages. the dow jones industrials continue to gain. the dollar has been weaker. that really gives the opportunity for equity to take off. still moving higher. i was looking at the s&p, dagen and connell, you wonder whether
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or not taken hold 1400 it is well above that level now. connell: now to the throat union protests in michigan. dagen: jeff flock is in lansing, michigan, with much more. jeff. jeff: first, i want to show you the scene out here. you have been walking around. my guess is about 12,000 people so far. many of them inside. there is not much you can do, other than make your voice heard. >> i am sure there will be some legal challenges to it. other than that, we will have it in michigan. we will work extremely hard for the next few years to make sure we elect people who listen to all of michigan. jeff: how much does this damage
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the union folks? >> we have 100% participation. we do a good job for the members. members understand that if they are going to get the barest contract, there needs to be collective power together. jeff: you will have workplaces now where if you and i are working for general motors, we both make the same amount of money, i can opt out of the union. the governor said he does not want the vision in this state. >> he is creating division in the state. the tens of thousands of jobs, the billions of dollars, through collective bargaining that were brought into the state of
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michigan. he turns around and slaps those people in the face. it is crazy. this is not uniting michigan. this is dividing michigan. jeff: you lost proposition two. you lost that. the governor said that if i know why he brought this to the floor. >> the governor had signed a number of right-wing bills. teachers would not have, be able to outdo deductions. it was crazy. we see the pattern. we try to preempt that by getting proposition two. too many things on the ballot. we did not pass that. we are here to fight that. jeff: great to talk to you.
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the economy goes on. we will see what the impact of this is. we will give you one more look of the crowd outside the michigan capital. no violence, thus far. dagen: jeff flock, thank you very much. connell: judge andrew napolitano. the president, president obama actually hit on this yesterday. saying the state has the right to work does not mean it takes away the rights of the union. >> right. in a right to work state, what that means is you have the right to a job in the government cannot force you to join a union or if you refuse to join, take
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dues and give it to the union. the government and say join the union or else. the government is saying join the union or else. that violates your freedom of association caught by forcing you to associate with a group you do not want to associate. it is theft of your property. this does not interfere with the right of unions to form, to organize, and to bargain collectively. this has to do whether or not unions could be thrust down the throats of workers. whatever the reason is, they do not have to give a reason. what about the legal a lot that
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is less than half the country. what about the localities of it? >> in explicitly, connell, the courts have upheld the right of state governments to have gone right to work states. certain union dominated industries. it is the ability of the state to regulate the economy and organize the economy. to be, it violates freedom of association. connell: the union presented this. you heard that from the head of the uaw. right to work is some radical idea. some crazy idea.
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they are worried, though about it being trained. >> right to work is a natural right. the union does not have the right to stand in between the two of you if you do not want the union there. they have succeeded in getting politicians elected to office who will reward them with money from non-union members. this keeps perpetuating itself. connell: to separate from the legal issues and talk about the politics for just a moment, because of what michigan represents, is this a bigger bill than any other state? >> yes.
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michigan is the heart. michigan is really the heart of the labor union movement of the country. my father was in a labor union. you like your 40 hour workweek. you like your weekends off. it is because of negotiations that resulted from labor union strikes 100 years ago. there is a limit to what the government should permit unions to push it around. dagen: i was in a union. it is presented to you. you join, you pay dues. why would i pay dues when it is last hired and first fired. >> i wonder who they would fire first. dagen: thank you so much. the u.s. economy may be
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improving. small business owners are not optimistic. new numbers on that that we will talk about. connell: congratulations taxpayers, you no longer own aig. we look at the key markets today. that would be treasuries. ♪ [ malennouncer ] it's tt time of year again. time for citi price rewind. because your daughter really wants that pink castle thing. and you realldon't want to pay more than you have to. only citi price rewind automatically searches for the lowest price. and if it findone, you get refunded the difference. just use your citi card and register your purchase online.
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have a super sparkly da ok. [ male announcer ] now all youeed is aagic carriage. citi price rewind. start saving at citi.com/pricerewind. >> i have your fox business brief. the u.s. trade deficit widened nearly 5% in october.
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imports fell to their lowest level since april of last year. the trade gap with china did hit an all-time high. will fred industries is the latest offering special one-time payments. the company is boosting its quarterly dividend 20% to 16 and a half% a share payable on december 28. the website planning to streamline its operation and focus its resources on engagement innovation and customer satisfaction. that is the latest from the fox business network. giving you the power to prosper. ♪ with thinkorswim by td ameritrade. use the news links breaking stories with possible breakout stocks, options with potential opportunity, futures and forex with in-depth analysis. it an all-you-can-eat buffet for all things trading. thinkorswim by td ameritrade.
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it doesn't just deliver news. it's making news. trade commission free for 60 days, plus get up to $600 when you open an account. governor of getting it done. you know how to dance... with a deadline. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above, and still pay the mid-size price. this is awesome. [ male announcer ] yes, it is, business pro. yes, it is. go national. go like a pro. connell: is limited plans and ameritrade. companies issuing special dividends before that ended the year. there is one, though, that you will not see on the list.
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dagen: shibani joshi is here to talk about it. people spending hundreds of dollars each year on the gadgets that they make. christmas has come early for a lot of the investors on wall street. over 350 companies and different types and sizes names including aol, costco, disney, just to name a few. you can bet that one company will not be joining this list. that company is apple. the company can certainly afford to pay out and increased dividend. it is sitting on $121 billion. the cash balances will double to 250 billion by 2015. the majority of this cash, we are talking about 70% of its cash is being held abroad. that would incur a tax.
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probably not likely for this company. investors will just have to be happy with all of their latest gadgets that the company releases and, of course, the stock price appreciation. down about 17% in the last three months. year to date, the stock price looking pretty good. up 34%. the company also reinstated a dividend. this is the first time they have done that since 1995. you have to take what you can get, when it comes to apple. connell: let's go to breaking news out in lansing, michigan. these are live pictures that you are looking at. some of the union protesters apparently ripped down a tent. you can see the state police are on hand there. trying to keep this situation under control.
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we will go back if there are more developments. dagen: they are fighting their fight, that is for sure. nicole: take a look at how aig is staring at this second. this is as the government is claiming a profit of $2.7 billion. they have done six sales this year. they acquired it during the bailout. here is a look at the stock right now. up 4.4%. that is good news for the taxpayers. the s&p 500 is up almost 14 points. another great day here on wall street. the tech heavy nasdaq composite has been shining. leaders among some of these
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major averages. also, the banks are doing while. connell: small business owners apparently not very optimistic at all about the next six months. we brought scott brown into talk about it. this means what works back maybe more the election.
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many of them are trying to decide whether to pay the penalty or to cover their employees. it really is not clear what impact it will have. the view is certainly negative. connell: have a look at this and that this is something that will hit the economy hard next year? >> it is hard to say. normally, we will look for those firms to account for a lot of job growth and expansion. we may see some softer job numbers in 2014. connell: that is what this is all about. the idea of confidence.
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a way to make the most of the tough situation. >> i think that is what is coming through. ultimately, it is really about the demand for the goods and services they produce. connell: is there strengthening their clocks back. >> once we get through this fiscal cliff certainty, i think the prospects are a bit better. i think the fundamentals are gradually improving. you have some weakness in the rest of the world, which is not helpful. you have state and local government which have seen a correction. the housing is correcting. connell: there is no way around most of this stuff.
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>> i think as we get closer to the deadline at the end of next year, i think a lot of the lawmakers in washington will be looking at details. things that were put in place to get the bill passed. maybe some corrections to the bill. connell: scott brown, thanks a lot. dagen: we will soon see corn prices hitting new record highs. sandra smith will tell you all about it coming up in today's trade. connell: we will also get to some of the winners. here they are at the nasdaq today. ♪ there is no mass-produced human. every human being is unique. and there is one store that recognizes it. the sleep nuer store. the only place in the wod you'll find the extraordinarily comfortable sleep number experience.
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dagen: there is a ruckus in lansing, michigan. we want to go back to jeff flock. jeff: you are looking at the remnants of a tent that was wrecked by supporters. i should say, this has generally been a very calm protest. there has not been an lot of violence. somehow the tent came down. i am not sure how it happened. the union folks suggested that the non-union folks should have gotten union labor. maybe it would not have fallen down. the police came in. we are okay at the moment. all call. connell: right now to corn prices. dagen: sandra smith has today's trade. sandra: influence is everything
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we do on a day-to-day basis. goldman is out with a big call. let me just give you some perspective. we have had three years of smaller corn crop. inventories are now at 839 year low. we have fallen about 14%. goldman is calling for an average price of 723 a bushel. they are calling for an average of 825 a bushel. that is another dollar gain from where we are today. if you look at a ten year chart, just to give you some perspective, there was a long time when core prices were a dollar 50 a bushel.
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how you can play this in the stock market. dagen: thank you, sandra smith. connell: we are waiting to hear from the speaker of the house, john boehner. dagen: stay right here on fox business and you will hear the speaker speak coming right up. ♪
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dennis: i am dennis kneale. cheryl: i am cheryl casone. breaking news at the top of the hour. we are moments away from tree to be event, up 109 points. john boehner taking fiscal cliff talks and that is raising hopes
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among traders. cheryl: we are going to take a look at what is beyond the fiscal cliff even of washington save the country from going over that cliff we have a stock panel that has lots of worries and a bit of hope that. dennis: which makes some buzz codes when the dow is up 111. michigan's capital and besieged as protests over the right to work legislation has taken an ugly turn. we are live. cheryl: never know what is going to happen with jeff flock covering that story. we're coming up on the top of the hour. stocks every 15 minutes and nicole petallides on the floor of the stock exchange with a nice triple digit gain. nicole: what a gain on wall street. we have three straight weeks of gains to new recent highs. looking at 13,300 on the dow jones industrial, that is good and the s&p 500 calm, holding above the 1400 mark. they were worried when we were
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breaking down below and we are continuing the trend to the upside. one of the reasons is europe, europe has been a break out and the dollar has been weaker and that has held equities higher. we continue to move to the upside. so far so good. 20 of 30 names are winners and mcdonald's is down. cheryl: a couple things we are watching for. house speaker john boehner expects to make some last minute remarks on the progress of the fiscal cliff talks, the president began on the house floor. we did not expect this at all. now we're hearing we will get some type of statement from john boehner. what do we expect? >> on the house floor, in the next five to ten minutes,
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somewhere near the top of this hour and we have been hearing from sources is it has been a no go, republicans still want spending decreases, a list of spending cuts from the white house and democrats want the top rates to go up for those earning $250,000 a year. we expect john boehner to submit a status update but considering how things have been going, we can expect it will be not all that positive. we spoke to other republicans including chairman of the house financial services committee who says there's significant sense of pessimism. >> there have been talks. i hope they have risen to the level of negotiations but i don't know. seeing the president running around the country and in campaign mode is not a helpful sight. seeing him walk back to positions that he had before before the campaign, now that the campaign is over with, it is
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not very helpful. >> we achieved the impossible this morning and had a discussion that didn't have to do with the fiscal cliff. i asked as the new chairman at the financial services committee if he supports breaking up the big banks, basically he has spoken to a lot of smart people and people cannot tell him the appropriate side of a bank, he says there's a place in the economy for banks like jpmorgan and citigroup. cheryl: it is on both sides, john boehner agreed to not really be public about these discussions and we are expected to see john boehner speak. am i wrong in assuming we did not think we will get any comments from either side? >> you are right. the issue with that is typically when you are making progress you won't hear from the principals or get any leaks and we have seen that the last couple days but we heard from john boehner friday and the president yesterday so people have been talking and there are folks
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around town seeing that as a negative indication and sources have told us it has been slow going in these negotiations. cheryl: rich edson. dennis: the dow losing 112, they're starting to catch wind that john boehner will say something depressing instead of hopeful. clearly betting on good news. cheryl: rich edson obviously standing by, thank you, we will take those live comments from john boehner when you guys appear on the house floor. dennis: i will go with this. even if we do avoid the fiscal cliff our next guest says a european blow up and apple topping out could be bigger holders for the market in 2013. there is gary kaltbaum, thank you for joining us. you think we will have an accord. we have got to stop. we have the house speaker. we will be with you in a minute. >> wondering when is the
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president going to get serious? i yield back. >> the chair recognizes the gentleman from pennsylvania five minute. >> mr. speaker, i rise today to recognize victor they carlo for receiving the national order -- cheryl: obviously the gentleman standing by. we expected to hear from john boehner but didn't hear much. it was very brief, very brief. dennis: didn't speak very long. let's go back to our guests, gary kaltbaum. you think we will have an accord on the fiscal cliff but we will have the european blow up. what is the investor to do? >> investors have got to be focused on what they can control and less about what they cannot control. we believe the fiscal cliff will be resolved in some fashion. we believe we have major head winds coming out of europe in the early part of 2013. we have italian elections were not shot going to be pretty and
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spanish issues to deal with $90 billion or ninety billion euro of maturities in 2013. what we have to focus on as investors is where we can put capital and find a way to get a return that does not require the s&p to be rallying sharply. dennis: you have another worry, apple. if we fall out of love with apple can stocks do well? 18% of the nasdaq index? >> there can be plenty of stocks doing well as apple goes down but i'm a big believer in leading stocks in the market and over the last year you had things like chipotle, green mountain coffee, netflix, apple seems to have what i consider the characteristic of every major top of a great stock and went from 15 to 700. it is overloaned andover's about love and showing serious distribution and if it keeps going down i think it could be
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indicative of markets. dennis: not just falling out of love because it is a cheap stock, 14 times earnings versus market average of 20. >> keep in mind apple's earnings are decelerating a big way. a grown 50s and 60s last couple quarters in the 20s. if that worsens cheap might not be so cheap anymore. i am a big believer in stock price performance. the market is a great forecaster of the future and if apple gets squeezed and maybe they come out with an iphone that everybody doesn't jump all over because there are six out there already, that may be the end for now. apple had a run from 15 to 700 since the ipod and every stock has had a shelf life. dennis: they do tend to fall down. we have seen the european blow up coming for two years. if they do have -- the not have to be the end of the world. u.s. financial institutions and investors had by now. >> to extend they are.
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ultimately what you have is not so much a loss from default in europe. that is less of a concern as you have a drag on the economy. you have negative growth, a recession in spain and italy this year. you also have negative growth in greece. there's only so much you can have of negative growth across the continent of europe before impact spending patterns across the world. there are positives out there but we have to be focused on the fact that these problems are not going to go away. one of every four people in spain are unemployed and under the age of 25. fifty-six% to not have a job. that is a major rest of the for disaster and the math does not work. if you try to fix a problem with negative growth and nobody working. dennis: a lesson here. one last note on the fed. what is your concern there? >> pretty simple. the fed has raised the credit market. yield and price are not real. they are buying up trillions of
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dollars of these bonds and i'm worried about the day when the market no longer listens to them. the market has not been bigger than the fed over the last few years. of the market gets bigger than the fed, look out. yields should be much higher than where they are and if we ever get to that point there could be big trouble. a lot of investors are being forced into a lot of bonds and wrong place and time. dennis: thank you for being with us. cheryl: we continue, continue to follow a couple big pieces of breaking news. first sense of a recap of what john boehner did say on the house floor. he said he is hoping they will get serious in the fiscal talks. he is hopeful an agreement can be reached and then he said he thinks they can reach an agreement. he is hopeful but that is all he said. the actually left the house floor and you saw it live on markets now. a big piece of breaking news we are following is the justice department right now holding a news conference in brooklyn expected to announce a whopping
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$1.9 billion to settle a money-laundering probe from the transfer of billions of dollars. the u.s. attorney for the eastern district of new york. >> the european and middle eastern entities routinely do business with countries on the u.s. sanctions list. they then funneled hundreds of millions of dollars of transactions through the united states through hsbc there. be evading u.s. prohibition on such transactions by disguising the force of the fund so payments could go for a. hsbc has admitted its guilt to the four count information filed today which sets forth two violations of the bank secrecy act, violation of the international emergency economic powers act and violation of the trading with the enemy act. as part of its resolution of these charges hsbc has agreed
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$1,256,000,000, the largest amount ever by a financial institution for compliance failure. they also agreed to pay civil penalties of $665 million to resolve parallel regulatory actions brought by the office of the comptroller of currency and the federal reserve bank for a total recovery of over $1.9 billion. the resolution also requires hsbc to implement a series of compliance reforms that we expect to become a model in the financial industry. today's resolution involves multiple agencies and the culmination of years of investigation and analysis. the bank secrecy act investigation began here in the eastern district of new york as an outgrowth of a money-laundering case conducted by the eldorado task force, multi agency group led by the department of homeland security.
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led by groups to devise frank gregoryow and graham kline and carmelo guana. this is handled in conjunction with the -- cheryl: loretta trades for the eastern district of new york, this is happening or one across the water from us in manhattan, this is europe's largest bank, $1.92 billion settlement being sold right now and announced today. this has been going on for months since the summer. they will be $1.92 billion to settle as money-laundering probe the bank accused basically in the senate and accusing them over the summer as well basically laundering money for terrorist groups. talking about the country of iran, sanctions against the country of iran and accused of laundering money filtering money for that country. dennis: it is $1.2 billion in forfeiture and $6 million in civil fine, not sure why they break them out differently, but acts of trading with the enemy,
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more details. >> a statement this morning about the settlement. the deferred prosecution here, we admitted guilt in this and stuart oliver who is the group executive, we accept responsibility for past mistakes and said we are profoundly sorry for the mentally do so again, almost like that seen in the producers, the millbrook movie, after keating millions of people lot of money, says we are very sorry and promise not to do it again. hsbc put into place new safeguards to prevent money-laundering under review for five years, department of justice monitor will be there to make sure they are in compliance and you should know as a result of the settlement not one person who -- from hsbc will face prosecution. there will be no criminal charges against managers or individuals who allow this to go on and from 2006 to 2009 roughly
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$15 billion in cash transactions were part of this money laundering problem and it did involve countries like mexico, iran and syria so the headlines from this in addition to the $1.9 billion is that nobody from hsbc will be prosecuted and the shareholders will essentially bear the brunt of this criminal activity. back to you. cheryl: the third quarter, 1$.5 billion, knowing this settlement was coming, correct? >> correct but shareholders who were being held accountable for the bank's criminal activity, not the people who were in charge at the time and there were e-mails and letters from staff at the bank trying to notify their supervisors this needs to stop. cheryl: we continue to monitor the press conference for all of us. dennis: corn prices at high as an elephant's i and how high corn grows but sandra smith is ahead on how to play. cheryl: the fed expected to pump
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more money into the economy tomorrow. we have a guest in moments who says we are stuck in q e. eternity. dennis: every day at this time, a look at oil. can i help you? heard you guys can ship ground for less than the ups store. that's right. i'vlearned the only w to get a holiday deal is to camp out. you know we've been open all night. is this a trick to get my spot? [ male announcer ] break from the holiday stress. save on ground shipping at fedex office.
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ground on corn but first to nicole petallides on the floor the new york stock exchange. nicole: i want to take a look at the new york stock exchange. the dow jones industrials up 117 points. we are holding on to significant gains on wall street. the s and p posting a gain of nearly 1% and the earlier high, john boehner over the last half-hour and traders watching closely in the interday, shows you we pulled back a little bit, the language he useds and wall street looks into washington language and a couple words seem negative or cautious and seem to get back on track and trying to play it in washington and get the job done and solve it before the end of the year before the deadline has been moved up. here's a look at major averages up 100 a points on the dow still winning here. let's look at dollar general. not good news, coming under pressure and this is a cautionary tone they have given talking about competition and
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pricing, 5% for dollar general. what is going on? sandra: looking at corn prices. long time since we track these the bareback and a picture of the hedge fund world and lots of big bets being placed on corn and agricultural prices going higher the next six months. look at the six months charge of corn. corn prices around $7.25 a bushel in today's session. you see a six months charge prices are 44% since june of this year. all of this weather related. we had shrinkage in the corn crops for three years and inventory hitting 39 year lows and foreign global demand pushing up, goldman up another $1 over the next six months on average and that means plays like meat producers. that does mean costs go up to feed the animals, it also means they raise prices and in the short term that leads to higher prices for them so smithfields has been a buy, tyson, analysts
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love these as corn prices go up and one thing is for sure, when those corn prices go up and farmers are more profitable they spending on fertilizers and farm equipment, potash and mosaic, companies likely to benefit from higher corn prices. what to look at playing into the new year. cheryl: there's a great connection to the chicken producers and all of that. agreed to point out. thank you very much for what her ear to the ground on corn is that what dennis said? dennis: michigan under siege from union the right to work legislation in the union state. live from the capital there. cheryl: the what ifs, washington considers taking away from mortgage interest deduction the amount of those affected and the impact on how recovery may surprise you. dennis: his is how the world currencies are faring against the u.s. dollar. [ malennouncer ] it's tt time of year again.
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dennis: more on the hsbc news conference. shareholders are getting soaked for $1.5 billion to the fed but senior executives paying any price at all? let's go to adam shapiro. >> we just had the assistant
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u.s. attorney general actually saying that executives at hsbc instructed criminal entities in places like iran how to break the law. not one person from hsbc, not one of those individuals in their compliance office will be prosecuted and hsbc which says in their statement and keeps getting repeated at this press conference which says they are clawing back bonuses for those individuals i ask the bank how many individuals, how much clawback and here's what they say, quote, we are not providing details beyond those included in our statement. i would emphasize this is not about certain individuals. you have the doj paying people at the bank constructing criminal entities in places like iran, libya, sudan, burma, mexico, how to break the law and nobody from hsbc will never be prosecuted and shareholders get less holdings. back to you. dennis: that was the case in so
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many, almost like prosecution turning into a fund-raising arm. thank you very much, adam shapiro. cheryl: the fiscal cliff, mortgage interest deduction perhaps no longer the sacred cow. it is on the table for cuts to avoid going over that cliff. joining me with the take on how this affects you and the housing market overall is they're serious about that at this point. both candidates, president obama and mitt romney were not willing to address it in the debate. now it is on the table. what do you think our viewers should know. >> we have been talking about mortgage interest deduction back through the campaign but they're getting more specific for one possibility, the amount will be capped instead of 1 million or the rate at which mortgage could be deducted would be lower than the top marginal tax rate. cheryl: let's say i am deducting $100 so at this point it is thirty-five dollars but my deduction will be 28. >> one option, instead of being
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able to deduct $35 for every $100 of interest it might be $28. that is one option. cheryl: one third of filers in this country itemized deduction, a big piece of that is the mortgage interest deduction. half of those that use the mortgage interest deduction filers of the biggest percentage of their tax like 40% separate. that has got to go to the middle class on a nationwide basis. >> that is right. when will the types of deductions the middle-class and lower-income households itemize by far the biggest one is the mortgage interest deduction and when you add on top of that fact that you conduct property taxes roughly half of the amount of deductions people take on their taxes are housing related. cheryl: 96% of those that make them to hundred billion dollars, a, quote, pulte when you look at the met in united states to different story but they itemize but when you look at the cap does come down to $500,000 how much more would be affected on a percentage basis? how many more filers would be
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affected? >> the effect would differ geographically. the more expensive markets like new york and california and others there are a lot of people with mortgages more than $500,000 will be affected directly especially higher-income households in higher tax brackets will be more affected. the one to get more effect of our younger households in earlier years of mortgage. in a mortgage you are at mostly paying interest but shifted principle and the more you pay interest the younger you are, the more you are affected mortgage interest deduction -- cheryl: going to hurt the housing work and bring values down which is a housing negative your point. thank you very much. dennis: right to work advocates and union protesters facing off outside the michigan state capitol. we will take you there live. let's take a look at today's s&p winners. copd makes it hard to breathe,
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get the mercedes-benz on your wish list at e winter event going on now through december 31st. [ santa ] ho, ho, ho! [ male announcer ] lease a 2013 e350 for $579 a month at your local mercedes-benz dealer. >> i am nicole petallides live on the floor of the new york stock exchange. every 15 minutes on the fox business network we check on stocks to watch. the dow jones industrial average still holding onto triple digit gains after we heard from john boehner. some concerns about the fiscal cliff, certainly set the tone and they are working on solving that very big issue for americans, american taxpayers. look at the dow, up .9%. the s&p and the nasdaq also higher. the fifth straight day of gains, we have not seen that winning
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streak since the middle of march. dennis: thank you. sandra smith is back with us. sandra: the big news is the energy information administration says they're expected rise in 2012 crude output would be the largest rice in output. since 1859, guys. this is what is attributing to this. yearyear-to-date period of over0 per barrel earlier in the year until now. all that is private business. this is how they explain the massive jump in output in the united states. resulting largely from a significant increase in onshore oil production particularly from shale and other formations. this is adding to the bigger output.
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right around $85 per barrel, prices had been coming down on an intraday basis. the reaction in the market, lots of volatility. we sold off hard on the news that is a very bearish for energy prices. we will see how things turn out, but it is a very bearish sign for the energy market. back to you. cheryl: thank you very much. house speaker ohn boehner saying the president has to get serious about the fiscal cliff talks. dennis: rich edson with the latest from there. >> as we have been reporting, democrats and republicans are stuck on these negotiations. a few moments ago house speaker john boehner hit the floor and confirmed just that. >> i want people to know that the president and i met on sunday. it was a nice meeting, cordial but we're still waiting for the white house to identify what spending cuts the president is willing to make as part of a balanced approach to the
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american people. where are the president spending cuts? the longer the white house slow walk the process, the closer our economy gets to the fiscal cliff. herhere's what we do know. we know the president wants more stimulus spending and an increase in the debt limit without any cuts for reforms. that is not fixing our problem, frankly, it is making it worse. on top of that, the president wants to raise tax rates on many small-business owners. but even if we did exactly what the president wants, we would see red ink for as far as the eye can see. that is not fixing our problem either, just making it worse. i think the members know i am an optimist. i am hopeful we can reach an agreement. this is a serious issue and there's a lot at stake. the american people sent us here to work together. toward the best possible
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solution, and that means cutting spending. now if the president doesn't agree with our approach, he has an obligation to put forward a plan that can pass both chambers of the commerce. because right now the american people have to be scratching their heads and wondering when is the president going to get serious. >> to some that all up, house republicans have put an offer on the table and they are with you for a the white house. the white house is a first order of this is for congress is to allow taxes to increase the families earning more than $250,000 per year and they will talk about the rest later. back to you. cheryl: rich edson, thank you very much. we appreciate you covering thist breaking news out of washington. there's more news coming out of washington. the federal reserve will announce tomorrow what moves if any it will take when the meeting ends. our next guest is: the open-ended stimulus qe-ternity.
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many think the fed should do anything. they believe they should stay pat and not say anything until it is after the first of the year. use a qe-ternity is the better way to go. >> that is right. i think the fed has to probably do something to changed operation twists and turns of buying mortgage-backed securities and it is likely they will announce they will continue to have the asset purchase sides but cancels hillsides increasing amount of content using for months by $400 million. to move the gdp rate u right upo where it is centered and 4.5%, closer to 5%.
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cheryl: i want to be clear on what you think qe-ternity is. you say they will continue to buy mortgage-backed securities, $40 billion per month, but the extension of operation twists would be buying long-term treasuries and continue to buy treasuries both long-term and get out of the short-term market, is that what you're saying a? >> operation twists was in there before it began in september. the program buying long-term treasury and sell equal amounts of short-term treasury bills. what i expect them to do is to continue to buy the long-term treasury bonds that cancel the sales side of the equation, cancel the sales of short-term treasury bills and notes adding more to the qualitative eating program and get it centered. firms making revenue forecast, firms will make higher revenue forecast if they knew growth would be in the 5% range increase in the number of projects that make sense if they
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had confidence in the gdp growth in race trim their forecasts a richly. cheryl: what kind of a time frame are we talking about right now? we're barely above 2%. are we talking second half of 2013, do you think? 2014 for that type of growth to the scene? >> nominal gdp growth is the sum of inflation plus the real gdp growth so our projection for this is also the consensus forecast because nominal gdp growth expected to grow to about 4.2% in 2013, that is a little short of the target level but the fed has to do something to get it up to four and a half or 5% range projected. dennis: the other issue here is keeping that target in place or getting some hints they could
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change their mind little bit when it comes to inflation. we will see what the fed says tomorrow. >> thank you. dennis: and the glass ceiling in california. we will tell you about a new study. how female executives lead golden state companies. cheryl: and union protests turning ugly outside the michigan state capital. jeff flock is there. >> one bill passed, one to go, cheryl. the state office building. maybe you know his son. this is where the current governor of michigan is holed up as the state house considers the second of two bills making it a right to work state. back live in a moment with a union member who is a supporter of right to work. stand by.
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>> i'm tracy byrnes with your fox business brief. a rally on wall street continues on optimism. budget negotiations from washington will actually lead to a deal preventing the deep spending cuts. and the tax hikes set to go into effect come the new year. the dow is up about 112 points. small business owners in the u.s. who are more pessimistic: super storms and in the presidential election. national federation of independent business operation index for november felt the lowest ratings since march 2010. one last chance to get their hands on the iconic projection. and receiving what is believed to be the final shipment. the products sold at regular price and no limit on how many customers can buy.
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that is the latest from the fox business network giving you the power to prosper. uncer ] this is steve. he loves risk. but whether he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the marke he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, no matter what happens, which isn't rocket science. it's ju common sense, from td ameritrade.
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dennis: almost a quarter on till. stocks every 15 minutes, nicole is watching. nicole: some big news happen. the two biggest stockholders offering 32 million shares. winding down their interest. this is all about health care. let's take a look at the stock on the move and it has been dropping in the market. looking at the broader market averages talking with the fact we have seen gains across the board, this trend we have seen is quite stellar. this could be our fifth day in a row. you have two gain more than half of a percent on the dow. this will be the longest run since march 15. the nasdaq and a bunch up more than one and a hal.5%.
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dennis: more on the news conference. the shareholders, actually no, the unions we will talk to, the unions are taking to the streets in a large number in michigan where the state is set to pass legislation making it a right to work state. union membership no longer required. cheryl: jeff flock with more. you have amazing pictures coming out of there today. >> hard to believe it would happen in this state, but it is a very different scene from the one in wisconsin. take a look at the scene out here. if you remember what it looks like in wisconsin, that was a different piece of legislation. not as big of a crowd. the atmosphere has really changed, and i will tell you why. i have a union man here. he supports right to work. what are you thinking to support the right to work?
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>> what the union bosses are not on the membership are collective bargaining is not at risk. right to work does not affect collective bargaining at all, that is protected by federal law. they're giving bad information and so they are afraid, they're scared, they are angry, and that is why they'r they are acting ly are today. speaker you don't want to be required to join a union, but you told me if this passes, you may stay in a union. >> i want to help change a union from within. i'd resign from the union and take my dues money with me, they will be forced to listen to me and conservatives like me in the union. we can make the union better and more represented. >> like in the world of business, competition not necessarily a bad thing. we talked earlier with the uaw. brian was in the tent. belonging to the supporters of the right to work legislation. there you go.
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dennis: that is one brave union man. more on the hsbc news conference. let's go back out to adam shapiro. >> attorney general taking questions right now from reporters. the beginning of the press conference he said this is a direct quote on at least one location hsbc instructed a bank in iran how to format it is just so transactions would not be blocked or rejected by the united states. another government official made the comment the actions of hsbc actually assisted terrorists to take advantage of u.s. financial institutions. but then the question remains, why have not the people who instructed the bank in iran have to do that, why are they not being prosecuted? he will not answer why none of the executives at hsbc are going to be held accountable, why the shareholders will pay $1.9 billion for the bank's egregious. the egregious and blatant
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violations of u.s. law. dennis: thank you very much, adam shapiro. cheryl: it is time for your "west coast minute." less than 10% of top executive jobs in california are held by women. that is a result of a new study of the 400 largest companies in the golden state by uc davis. only 13 of the top 400 california companies have female ceos. nike wants to expand in oregon, but one big condition. oregon's governor: a special session of the state legislature to fast-track a process for nike if they invest 150 million in new facilities the state will agree not to change oregon's tax code. nike headquartered outside of portland in the land o -- the linn, oregon. and paying for free cell phones for homeless and poor people. they will get free phones and free service to keep in touch
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with family and also potential employers. this coming from a federal funded program. the plan expected to actually get the green light. that is your "west coast minute." denis. dennis: what if they gave the electioelection almost nobody v? we will tell you about facebook users. cheryl: trimming the fat from the military literally. why obese soldiers are being booted from the army. that is ahead. dennis: first, take a look at the winners over on the nasdaq.
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dennis: time for your media minute. facebook asked 1 million members to vote a policy change. whether they should so have the right to vote on other policy changes. look at how many members actually voted, fewer than a million. so few cared or because facebook fared the vote. and in touch with journalists all the while. now he sold film rights to his story. this one may land a world record for reality to documentary drama. and the osama kill mission movie. zero dark 30 opens next week. catherine bigelow makes a hero of another woman, a real-life cia agent. in a life, the "washington post" reports in mavericks got passed over for the promotion after that mission was successful.
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the key question is is this agent really out of line or was her behavior described entirely differently if she were a man? cheryl: they're cutting the fat from our military, literally. under intense pressure to trim the budget, the army is dismissing a rising number of soldiers who do not need fitness standards drawing from a growing number of troops grappling with obesity. the number of active-duty military personnel deemed obese actually more than tripled. obesity is now the leading cause of ineligibility for people who want to join the army. really fascinating statistics out of the army. using they're very fit, but they have a major issue. dennis: and delta reaching across the pond striking to sta deal for 49% stake in virgin atlantic airways. cheryl: present atlantic ceo will be joining melissa francis and lori rothman as
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"markets now" continues.
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dennis: it is now official, think wall street has fiscal cliff fatigue. the dow up 112 points even after the speaker of the house came on for much-anticipated address in a fit of saying a settlement, he said when will the presidents get to it? cheryl: there is actually a lot happening right now. posthouse speaker john boehner saying nothing is really happening. and all this information on hsbc. in the big news in the airline sector. melissa and lori have a good interview on that coming up. melissa: that is right. very interesting stuff. steve ridgeway coming up. the ceo. lori: will get a decision tomorrow. market loves stimulus. we have 100-point rally on the

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